In December, the average price of a new vehicle in the U.S. hit $47,077, up 14% ($5,742), compared to 2020, and up 1.7% ($808) from the previous month, according to Kelley Blue Book.
A Bloomberg article by Hannah Elliott can be found here: https://www.bloomberg.com/news/articles/2022-01-14/the-cost-of-a-new-car-won-t-be-dropping-anytime-soon
The rise came as U.S. inflation ended 2021 at sizzling levels—a 39-year high of 7%—with gasoline topping the charts with a 49.6% price increase from the prior year. The higher prices for autos, food, and apparel, among other things, reflect the pains of a reopening economy. Last year’s surge in car prices came as component shortages hit automakers just when consumer demand was soaring.
Whether prices stay high or not, it will all be relative to the market. New car dealers now more than ever need to take advantage of ACTUAL photographs on vehicles that they do have on their lots because online shoppers are more likely to give their attention to those vehicles. Customers are tired of going to the lot and dealers telling them “We can order it for you”. The American consumer wants what they want, now!
Maybe shoppers change over time to mirror how it currently is in Europe (you order your vehicle and wait). But we don’t see that happening anytime soon, so in the meantime, dealers really need to focus on merchandising their Inventory properly to reflect what they have on the lot.
The car experts at CarData, Inc. are ready to take your dealership’s Inventory to the next level. Contact us today for a free consultation.